Remember that time when you spotted a great little out-of-the-way restaurant and were really excited until you saw the "cash only" sign in the window and realized your wallet was a little low? Anything that causes friction or causes a customer to push off payment processing to another day is to be avoided diligently. What can you do to avoid this behavior?
Guest Author Chris McKee, Managing Partner of Venturity Financial Partners, talks about accounts receivable, customer invoice followup and how the InvoiceCare virtual A/R team fits in perfectly with Venturity's solutions.
Have you ever looked at your aging report with high hopes that your over-60-days and over-90-days columns would just zero out this once? In this article, we’ll talk about the most common reasons these balances persist.
Before you let the pressures of running a small business get to you, take a deep breath and sit back. In the words of Douglas Adams: DON’T PANIC. If you want to be a stress-free business owner, follow these tips.
The payment terms you’re using are probably “Due on receipt” or “Due in 30 days.” If those aren’t your terms, congratulations! You’re in the minority. However, most people adopted these terms long ago and never looked back. They are by far the most popular. Yet when it comes right down to it, neither one is very effective.
Best case, all your customers pay early or on time. But since we're addressing accounts receivable best practices, we need to address topics like late payment penalties. The late payment penalty is an important lever in your cash flow cycle, so let's talk about how to set them up, how to communicate them, and how best to enforce them.
Tweaking your invoice to perfection is well worth your time. Once you’ve found a winning formula, you can use it over and over again. Just keep in mind that positive results from even small improvements will be multiplied by the hundreds, if not thousands, of invoices you’ll send in the future.
The fact is, humans and animals are a lot alike. We’re creatures of habit. We do things the same way time and time again—until we learn otherwise. We’ve all been trained in various ways, and for you to get the most out of your invoicing and shorten your cash conversion cycle, you’re going to have to train your customers.
This one weird trick can increase the percentage of invoices that are paid on time by more than 5%. And it's really simple: Say please and thank you.
I come bearing news that’s good, weird, and perhaps even a little bit shocking: Your customers want to pay you. Understanding this simple truth can help you reorient your entire accounts receivable strategy so it’s not only friendlier, but also more effective.